M&S reports profit falls 19% for 52 weeks ended April 2,2005

24 May '05

4 min read

UK based leading clothing & food retailer M&S reports for 52 weeks ended 2 April 2005.

Progress/Highlights 2004/05:
- Focused the business through substantial structural and operational change
- New management structure
- Tightened cash and cost management
- Reduced stocks and commitment by £1.3bn
- Head office removal of 650+ roles
- per una acquired for £125.9m
- Financial Services business sold for £769m
- £2.3bn returned to shareholders

Key Financials:
- UK Retail sales ex VAT £7,034.7m, down 1.7% (last year £7,159.8m); International Retail sales £675.6m, up 1.6% (last year £665.0m)
- Group profit before tax and exceptional items £618.5m, down 19.0% (last year £763.2m)
- UK Retail operating costs before exceptional items reduced by 0.1%.
– Adjusted earnings per share 21.9p, down 6.4% (last year 23.4p); Basic earnings per share 29.1p, up 27.1% (last year 22.9p)
- Final dividend of 7.5p per share, up 5.6% (last year 7.1p)
- Later today in a separate press release, Marks & Spencer will provide restated financial information for 2004/05 under International Financial Reporting Standards (IFRS)

Note: All comparisons are based on a 52 week period for 2003/04

Outlook
When we updated the market in April we commented on the difficult trading environment. The outlook remains challenging, with tough economic and competitive conditions expected to continue. We are focused on delivering better quality, value and styling across all our product ranges, as well as improving service levels and store environment. We have made good progress, however, there remains much to do.

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